TransGrid Energy Secures over $1.4 Billion in Financing for a 450 MW/1,800 MWh Portfolio of Stand-alone Battery Storage Projects in Arizona

Originally posted via press release at TransGrid Energy.

Irvine, CA – January 30, 2025 – TransGrid Energy LLC (“TransGrid” or the “Company”), a leading owner, and operator of utility-scale renewable energy projects, successfully closed $705 million in debt financing and executed documentation for a $270 million tax equity financing commitment and a tax credit transfer transaction of up to $490 million in December 2024.

The Company will use the capital raised from these transactions to fund the construction of two utility-scale, stand-alone battery storage facilities, the Atlas VII and Atlas IX projects (the “Projects”), located in La Paz County, Arizona. With a combined capacity of 450 Megawatt/1,800 Megawatt-hours, the Projects will support grid stability and reliability for energy customers of California. Both Projects are under construction by Qcells, an industry-leading EPC company, and will achieve commercial operation later this year. In California, these Projects will provide capacity and energy to support grid resilience through 15-year Resource Adequacy contracts with Southern California Edison.

To finance the $705 million in project loans, TransGrid assembled a bank consortium led by Société Générale and Santander in their capacity as lead arrangers, which includes, in addition to Société Générale and Santander, BNP Paribas, Banco Bilbao Vizcaya Argentina, East West Bank, Shinhan Bank, Siemens Financial Services, and Associated Bank.

The financing package also includes a $270 million hybrid tax equity commitment from an affiliate of a major financial institution and a transfer transaction with a tax credit purchaser for the sale of up to $490 million in investment tax credits to be generated by the Projects.

“This successful closing of $1.4 billion portfolio financing demonstrates the commitment and execution capabilities of TransGrid to advance and deliver this 1,800 MWh of battery storage facilities to support reliability and stability in the CAISO market,” said Sean Park, President of TransGrid. “We are grateful for the strong support from our financing partners and look forward to expanding our partnerships to strengthen critical energy infrastructure across the country.”

“Société Générale is committed to advancing the global green energy transition and to helping the US reach its net-zero carbon emissions targets,” said Sang Joon Lee of Société Générale’s Energy Plus Group. “We recognize the vast economic potential of the battery market, as one of the fastest growing sources of power in CAISO and are thrilled to partner with top tier developers like TransGrid as they continue to lead the growth of renewable power generation.”

“Santander congratulates the TransGrid team on the Atlas VII and Atlas IX projects’ successful financial closing in a critical and growing energy market. We are committed to partnering with companies like TransGrid to propel the grid’s adoption of clean energy resources. We enjoyed working with all those involved and look forward to supporting TransGrid’s continued success,” said Andrew Platt, head of Structured Finance and Advisory at Santander Corporate & Investment Banking.

Wilson Sonsini Goodrich & Rosati served as TransGrid’s counsel for the debt, hybrid tax equity and tax credit transfer transactions, with Rose Law Group serving as TransGrid’s local counsel. Paul Hastings served as lenders’ counsel, with Snell & Wilmer serving as lender’s local counsel, and Baker McKenzie served as the tax credit purchaser’s counsel. Blue Rock Renewables served as the tax credit purchaser’s advisor on the tax credit transfer transaction. CCA Group served as TransGrid’s advisor on the tax equity and tax credit transfer transactions.

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